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EKKI Share-out Regulations


PREAMBLE

One of the purposes of EUSKAL KULTURGILEEN KIDEGOA (hereinafter, EKKI), as stated in Article 5-a) of its statutes, is the management of rights of use and other rights on behalf of authors and other owners of intellectual property, rights which can be specifically charged for as set down in current legislation and which have been conferred to copyright collectives for dealing with their revenue and share-out.

This is based on EKKI's interest in managing these rights, without any limitations, on behalf of their owners, who may be: Authors (owners or people who have acquired rights), editors, producers, artists or performers of works such as, but not limited to: books or similar publications, sound recordings, videos or other sound, visual or audiovisual formats, made available in any known format and which give rise to receiving payment for their use, which will be channelled through EKKI and distributed as per the regulations drawn up for this purpose.

EKKI states that share-out will be carried out in the terms set out in these regulations, according to its statutes and internal norms, specifically using its general rates, and, in the same way, cases which are not covered by regulations will be examined by EKKI's Board to decide on in line with current laws and customs, both national and international, general legal principles, national and international precedences, and in terms of social reality and the demands of good faith, avoiding any possible abuse of rights or anti-social use of rights.

I
GENERAL REGULATIONS
.

Article 1: These regulations' objective is to set forth the criteria for share-outs, the quantities which EKKI can receive collectively, being a copyright collective, in compliance with current legislation, specifically Royal Decree 1/1996 of 12th April, which passed the Rewritten Text of the Intellectual Property Law (hereinafter, IPL), given the fact that EKKI is understood to be the "sole office" in terms of representing the legitimate owners of rights of use for which remuneration can be collectively received by owners for their intellectual property and, in particular, for works which may form part of EKKI's catalogue.

Article 2: These regulations will be governed by the following principles:

2.1 Principle of transparency, by the terms of which EKKI's entire administration and management will be available to all its members, and any third party, who might be interested in it; annual accounts will be published and can be examined at any time publicly by any person who may be interested in them.

2.2 Principle of equity, by the terms of which share-out to all owners will be carried out in the same way when situations and circumstances are similar; at all times, efforts will be made to carry out the fairest possible share-out.

2.3 Principle of proportionality, by the terms of which share-out will be made to owners in proportion to the use made of their works, or services, depending on the type and kind of use and, in particular, the identification and determination of remuneration for the rights owners of the works in question.

2.4 Principle of exclusion of arbitrariness, by the terms of which share-out must demonstrate the egalitarian application of each part of these regulations, taking into account the type of works, performances, use and media.

2.5 Principle of legality, by the terms of which share-out to authors or other legitimate intellectual rights owners who may be co-owners, in they are not in agreement, will be carried out in terms of the Community of Property and other norms or special regulations which are in force and which regulate the work being exploited, in terms of the agreements, laws or other types of norms in force and relevant to each case.

2.6 Principle of single collection, by the terms of which EKKI will collect remuneration whenever it is due, whenever the rights which it collects may be collected indistinctly and together, for intellectual rights belonging to authors, editors, artists and performers, as well as producers, etc., being and acting as the single recipient of remuneration for each type of share-out set forth below, always taking into account the share-out to be made and having made any appropriate deduction due to different types of expenses as seen fit beforehand, always taking into account the proportions between them, as specified below.

Article 3: Legitimate owners are taken to be physical and legal persons who have rights of use to a work or service as specified in the IPL, who have designated their collective remuneration to copyright collectives and who, while in principle the authors (persons who own their rights or have acquired their rights of use), may also include: editors, producers (of both audio and audiovisual works) and performing artists.

Article 4: Works subject to collective remuneration are any such which can be made use on public communication media and reproduced, as specified by the IPL, and which may benefit from collective remuneration collection as carried out by copyright collectives such as EKKI.

Article 5: Means of collective remuneration are taken to be those which, directly or indirectly, can be use by copyright collectives to obtain remuneration for the rights use of intellectual property and which may include, as non-exclusive examples: Quantities which may be received from the State Budget for the use of intellectual property rights; the payment of general rates passed by EKKI, etc.

In no case will share-out or remuneration collected include sums which EKKI might receive for reasons other than collective remuneration for rights of use such as, but not exclusively, donations, subsidies, etc.

Article 6: Without prejudice to share-out as specified in these regulations and, as previously stated, the total collected using all means for collective remuneration available will be taken into account, and the total collected (TC) must be the basis for the percentage quantity with EKKI must deduct in line with its statutes in order to carry out its own activities and meet its objectives.

Article 7: In order for EKKI to be more equitable, proportional and impartial, the appropriate methods and means will be determined in order to obtain detailed information about the degree of use of works and services by the users of its services.

Share-out will be established in line with this information, and will also take into account the ways and means in which works have been exploited and made available to the public and users in general.

Article 8: Taking into consideration that EKKI is a copyright collective which manages collective remuneration rights for authors, producers, artists and performers which are made use of in very different ways, and often at the same time, but which correspond to different owners who have different legal identities and whose rights may have been acquired in very different ways, to such an extent that EKKI may have to give details of its collective remuneration to different owners, as per the agreements signed with them, this share-out regulation specifies separate criteria for AUTHORS, PRODUCERS and performing ARTISTS.

In other words, remuneration will be collected in a "single shop", but the remuneration collected will be distributed in different lots depending on whether the rights belong to Authors, Producers or Artists, although they may be for the same work.

For this reason, when any work is registered in the EKKI catalogue, its owners must specify the proportion which belongs to:

Article 9: Share-out criteria will be established taking into account the means by which collective remuneration has been obtained, depending on whether the means can identify the work used in some way or not, as well as the quantity of the said use.

Article 10: When share-out takes places, and in line with the criteria explained below, the following will be taken into account:

10.1 On the one hand, works used whose owners are fully identified in their use and remuneration, for example: Theatres, cinemas, concerts, etc. In these cases, 100% of remuneration will be shared out, deducing the quantities legally established for this purpose.

10.2 On the other hand, works used whose owners are fully identified, but whose use in terms of those receiving it may not be fully determined, making calculations necessary in order to make share-out as fair as possible. For example, public communication on television and radio, etc. In such cases, the quantity to be shared out (T), which is established by subtracting the percentage which EKKI subtracts from the total received (TR) by statute, as well as X% of the quantity received as compensatory remuneration as set out in IPL Article 25 and, as defined in Article 25 of the said law, used for: 1) Promoting activities or services which are of assistance to members of EKKI and 2) Carrying out training and promotional activities for authors, artists and performers.

10.3 The item for works which may be used by certain tendencies and, in order to be coherent with current reality at all time, have not been identified but which, in terms of logic, may also be exploited as seen in surveys and information available to such as EKKI, the media and even public bodies involved. In such cases the amount to be distributed (T), as obtained by subtracting the percentage with EKKI receives by statute (TR) and subtracting the funds shared out in the previous section (Art. 10.1) and divided by 3 will be shared between the catalogues used as corresponding each owner.

10.4 Lastly, the quantity to be distributed (T) calculated by subtracting the percentage which, by statute, EKKI deducts from the total collected (TC), and subtracting the funds shared out as per the previous section (Art. 10.1) and divided by six, to which the relevant legal imperatives must be applied, as specified in Articles 154 and 155 of the IPL, which must be specified by the general assembly, and which establishes that:

10.4.1: The sums collected and not claimed by their owners in a five-year period from 1st January of the year after their collection will be used for:

10.4.1.1 Carrying out activities which help members of EKKI and/or training activities and promoting authors and performing artists.

10.4.1.2 Promoting the digital offer of protected works and performances whose rights are managed, in the terms set down in Article 155.1.c) 1st and 3rd of the IPL.

10.4.1.3 Increasing distribution to the other works managed by organisations which have been duly identified.

10.4.1.4 Financing a "single shop" for invoicing and payment.

Annually the general assembly will fix minimum percentages for quantities collected and not claimed which will be used for each of the purposes stated above and which, in no case, except that mentioned in 10.4.1.4, may be less than 15%.

From this time onwards, and as per this regulation, it is stated that 50% of the quantity mentioned will be used for the purpose stated in point 10.4.1.3, in other words, increasing share-out for other works managed by the organization which have been properly identified.

In this case, the amount to be shared out (T) is obtained from the total collected (TC) minus the percentage subtracted by EKKI from (TR) and the funds shared out as per previous section (Art. 10.1) and divided into 3 parts between each catalogue made use of.

10.5 Entire share-out

As derived from the above 10.1:

10.5.1. In situations in which collective remuneration is the result of direct, specific use, in which the works and their legitimate owners in terms or receiving remuneration are wholly identified and associated with EKKI, being part of the EKKI catalogue, the sum collected will be given in its entirety to the legitimate owners, applying the legal taxes corresponding, without EKKI administration deducing anything.

In any case, when works are self-produced, this communication or reproduction will be subject to but exempt from EKKI rates: in other words, EKKI will not charge any tariff or expenses except those which it must by legal decree.

In order to understand this specific point, it must be stated that it is an exception to the reason for the existence of copyright collectives, which exist for the majority of cases, in which it is difficult or impossible to make this identification.

10.5.2. If part of the works or owners are such as mentioned in section 1 and others are not part of the EKKI catalogue or associated legal owners, the proportional part from the EKKI catalogue will be share out in its entirety as set forth in Section 1, and the remainder will depend on reciprocal agreements held with the corresponding copyright collectives for their catalogue and remuneration collection.

II
SHARE-OUT SYSTEMS FOR AUTHORS’ RIGHTS ON MUSICAL, AUDIOVISUAL AND MULTIMEDIA WORKS.

Chapter 1
Share-out for the use in live performances of works of intellectual property

Article 11: Human performance.

11.1 Musical works, with or without words, are those performed in public by solo performers, vocal performance groups, bands or orchestras (simple works, hereinafter) live.

In spite of their complexity and multiple human participation, this also includes theatrical works, musicals, choreography and pantomime (complex works, hereinafter), live.

11.2 Public communication in the open air or in the street and, in general, in closed spaces:

11.2.1 When the catalogue is made use of in this way, EKKI will provide a document called the "Performer's Declaration" for specifying the work or works performed.

11.2.2 Share-out will be carried out taking into account the information provided in performers' monthly declarations, which determine the amount to be collected during each period. The amount to be collected will be the sum of the different rights of use for each performance of the different works mentioned in each Performer's Declaration and multiplied by the estimated use of each work.

Once this list has been obtained, the works will be checked with the catalogue managed by EKKI in order to carry out the corresponding share-out, while the others will be covered by reciprocal agreements with each corresponding copyright collective.

11.2.3 When use is made of them in premises prepared for this purpose, share-out between the owners of works will be carried out as per the EKKI register or, if the case arises, after deducing sums which could apply to other works which are included in the performances to illustrate them or main roles within the performances.

11.3 Varieties

11.3.1 Varieties are taken to be the result of the public communication of works whether musical or literary by human means, such as: songs, dances, jokes, parodies, monologues, circuses, mime, poetry and choreographies, represented at festivities or similar shows.

11.3.2 Rights for these varieties can be classified in various categories depending on the place where they are held and we should point out that:

11.3.2.1 When public communication takes place in facilities for large numbers of people, these are called "Large Concerts".

11.3.2.2 When they are performed by companies which put on shows, including several varieties, they are "Complete Variety Shows".

11.3.2.3 When they are held in places prepared for them and used for them exclusively, they are "Party Areas".

11.4 Rights Distribution

The varieties programme, as carried out and as should be declared by those in charge of each show, and bearing that in mind, will be used to share out between all the works performed following the principle of “prorrata temporis” and, if there are no determined times for separate work, assignation will be determined by parts. If there are difficulties or performing differences, share-out will be done by dividing the amount to be shared by the number of works.

11.5 Collecting remuneration without a programme.

If remuneration is to be collected without documents or data about the use of works and their communication, or the shows have been sporadic, or if shows have been cancelled, the amount collected will become part of EKKI's funds for covering its own management and administration costs.

11.6 Distribution when a show includes various works and their owners have not given instructions to EKKI in order to obtain remuneration other than that from the minimum amounts applied for this type of use of catalogue works: distribution will be carried out giving equal rights to each of the divisible parts of the show and, at the same time, assigning equal rights to the works in each part without taking into account, in any case, the duration of the works or the number of acts in each one.

11.7 Regularity of varieties' share-out.

Such distributions will be carried out on a three-monthly basis: 1. January/March 2. April/June 3. July/September 4. October/December

Chapter 2
Share-out of rights produced by all types of public communication works using different formats.

Article 12: Including rights collected for the public communication of musical works, with or without lyrics, from the EKKI catalogue, using tangible or intangible formats and which are carried out in any of the ways stated below.

12.1 Share-out of rights in general.

To be shared between the works made use of as follows:

12.1.1 Share-out will be on a six-monthly basis, in June and December; the share-out in June will be the use of rights in the last half of the previous year; that in December will be for the first half of the current year.

12.1.2 The following documents will be used to carry out the share-out:

12.1.2.1 Declarations and surveys:

12.1.2.1.1 Those carried out in: Dance halls (including discotheques, dance halls, party rooms, variety halls, performance bars, café-theatres, dances and varieties attractions, singing cafés, concert-cafés or other places with similar characteristics).

12.1.2.1.2 Musical entertainment in hotels, cafés, bars, public places not mentioned in the previous section, including factories, offices and work centres.

12.1.2.1.3 Jukeboxes.

Data obtained from surveys, data about works used, will be compiled using information obtained in public places and a six-monthly sample will be used, the numbers and places of which will be determined by a specialised unit which has no interest in the use share-out, and will take into account: geographical territory, the number and type of sessions, opening times, etc.

12.1.2.2 Declarations obtained by the use of or programmes handed in about:

12.1.2.2.1 Musical entertainment in vehicles (such as buses, trains, ships and planes, etc).

12.1.2.2.2 Those used in contracted musical entertainment services.

In this case the users' own declarations will be taken into account.

12.1.2.3 Works which are not made use of, according to the information obtained using any of the previous procedures mentioned in points a/b, will not be included in the share-out.

12.1.2.4 Works which are seen to have been made use of will enter the share-out using one of the procedures mentioned in points a/b, receiving the whole amount collected, as seen in each procedure, in proportion to the use of each one as collected using each of the procedures.

Chapter 2-1
Collection for use on radio stations.

Article 13: Share-out systems, radio stations

Remuneration obtained for share-out due to public communication on radio stations and for works which have not been given special authorization or any other type of remuneration.

13.1 Information obtained for share-out as follows:

13.1.1 Monthly programme sheets provided by Radio Nacional de España (RNE), and by Radio Euskadi (EITB), will match the entire broadcasts of Radio Nacional, Radio Clásica, Radio 3, etc., or Radio Euskadi, Radio Vitoria, Euskadi Irratia and Gaztea.

13.1.2 Surveys carried out in commercial and public radio stations, both medium wave and FM.

13.2 Classification and valuation of share-out data.

13.2.1 As they are very different, the types of repertoire and works broadcast on radios must be classified in order to be evaluated, and we identify them as:

13.2.2. Due to the different classification which has been stated and the use which may be made of the catalogue, the following value points are assigned afterwards in order to carry out the share-out, giving each type of work the following points:

13.2.2.1 TOZC: 25 points per use (as stated above, after the first four minutes each new period of four minutes or fragment thereof will count as a new use)

13.2.2.2 T. 15 points

13.2.2.3 CS: 1 point.

13.3 Form of share-out

13.3.1 Taking the net remuneration to be shared out to be that obtained by collecting use rights paid by:

13.3.1.1 La Radio Nacional de España (RNE) and Radio Euskadi (EITB)

13.3.1.2 Commercial and public radio stations, both MW and FM.

13.3.2 The form of share-out will be as follows:

13.3.2.1 With the net remuneration obtained from the works used on the stations stated in point 1.a of this Article, a fund will be set up to be shared out according to the points assigned to each work as valued in the previous Article, 13.2 as classified, multiplied by the number of uses and then further multiplied by three.

13.3.2.2 The remuneration from the works used by radio stations mentioned in Point 1.b of this Article are used to make a fund which will be shared out between the total number of points assigned to each work as per the valuation established in the previous point, 15-2 depending on its classification, multiplied by the number of broadcasts, including all the radio stations.

13.3 Share-out period.

Share-out will be on a six-monthly basis, in June and December; the share-out in June will be the use of rights in the last half of the previous year; that in December will be for the first half of the current year.

13.4 Classification and valuation of broadcasts.

As broadcasts and the use of works on television are very different, they must be classified in order to evaluate them and identify them as:

13.4.1 GROUP A) "Complex" works.

These have been defined in the second paragraph of Article 11.1, which we refer to, and will only obtain remuneration from devices installed in public places, private copies and video players in public places.

Evaluation:

For other rights created for this type of complex works in media such as radio stations and television:

13.4.1.1 The rate given by the owners of these complex works for their authorization for their broadcast on radio and television will apply to the whole duration of each work and it will be the rights created on this timing that are assigned to the contents of the register for the work in the EKKI catalogue.

13.4.1.2 The whole duration of each work will be calculated by subtracting from its total broadcast time other works included in it.

13.4.1.3 In all cases this calculation will be made taking into account any agreements made with the owners of third-party works and those of the original "complex" work.

13.4.2 GROUP B) "Simple" non-audiovisual works.

13.4.2.1 Human performance: This is understood to mean the use of simple works which are performed live, although, depending on their purpose and use, they may be considered to be part of other classifications as stated.

Evaluation: 30 points

13.4.2.2 Symphonic music: This is understood to include works with large and small musical format, associated with concert halls for symphonic or camera groups, solo artists, instrumental soloists, vocal or mixed groups, traditional or contemporary, with different types of presentation and forms of expression.

Evaluation: 45 points

13.4.2.3 Varieties: "Simple" works (mostly musical) with their performers on screen, the centre of the broadcast.

Evaluation: 45 points.

13.4.2.3.1 Fragments of "complex" works included in the varieties group, using fragments, and, as such, being counted as "simple" works.

Evaluation: 45 points.

13.4.2.3.2 Parodies, sketches, pantomimes.

Evaluation: 15 points.

All of these works must be part of the EKKI catalogue and be registered as such.

13.4.2.3.3 Jokes

Evaluation: 1.7 points.

These, too, must be part of the EKKI catalogue and be registered as such.

13.4.2.3.4 Other literary works: Works not included in GROUP E) (exempt), may be literary narrative or similar.

Evaluation: 15 points.

13.4.2.4 Mechanical performance.

13.4.2.4.1 Background. Evaluation 7.5 points.

13.4.2.4.2 Advertising modules. Evaluation 1.5 points.

13.4.2.4.3 Background music. Evaluation 1.7 points

13.4.2.4.4 Theme tunes or presentations. Evaluation 2.5 points.

13.4.2.4.5 Intermissions. Evaluation 2.5 points.

13.4.2.4.6 Test card. Evaluation 2.5 points.

13.4.3 GROUP C) Audiovisual works.

13.4.3.1 Films. Evaluation 10 points.

13.4.3.2 Documentaries. Evaluation 10 points.

13.4.3.3 Written for television:

13.4.3.3.1.1 Original works written for television.

13.4.3.3.1.2 Already existing works adapted specifically for television.

13.4.3.3.1.3 Adapted original works written for television.

Evaluation 10 points.

13.4.3.4 Music video clips: Independently and having checked who has made/directed each music video clip, unless there is evidence to the contrary, the authors mentioned in the declaration will be taken as such.

Evaluation: 45 points.

13.4.4 GROUP D) Multimedia works. Evaluation 5 points.

13.4.5 GROUP E) Spaces not subject to administration, legally exempted.

13.4.5.1 News and information about national and international current affairs.

13.4.5.2 Reports about all types of news, events, acts and ceremonies, whose contents are purely informative.

13.4.5.3 Critics' work of all types.

13.4.5.4 Interviews, surveys and chat shows, whether improvised or not.

13.4.5.5 Sports broadcasts and, in general, all types of public events.

13.4.5.6 Any type of presentation using personal images and voices in off for all types of spaces.

13.4.5.7 Competitions, draws and similar spaces.

13.4.5.8 Advertising spaces.

13.4.5.9 Informative spaces about television programming.

13.4.5.10 Chat shows and comments about all types of subjects.

13.4.5.11 Any type of space which is exclusively didactic, including those for teaching languages.

13.4.5.12 Tightrope-walkers', jugglers', animal tamers', magicians', puppet-masters', mentalists' and similar people's shows, except for clowns, comedians and other habitual users of the EKKI catalogue who might perform in circus settings.

13.4.5.13 Any other type of programming similar in nature or form to those so-far described: this list is explanatory and not exclusive.

13.5 Weighting by time slot.

Television broadcasts will be weighted depending on their time slots and using the following percentages:

When a broadcast takes place during two time slots, the time slot in which it lasts longer will be used.

For broadcasts which do not have a specific space, being advertising spaces, station theme tunes, intermissions, etc, a price list of time accumulated over a six-month period will be used and 2.5% will be applied to the total.

The time price list is:

Chapter 2-2
Remuneration for use on television stations.

Article 14: Share-out system from television stations.

14.1 Classifying quantities depending on the type of works.

From the total to be shared out for use of repertoire – and after quantities specified in possible reciprocal agreements with other copyright collectives – a quantity for "simple", non-audiovisual works, another for audiovisual works and another for multimedia works will be determined.

In order to calculate these quantities and based on broadcast data for the six-month period for the share-out, real broadcast time of "simple", non-audiovisual works will be multiplied by 1.4 and, at the same time, audiovisual and multimedia works will be treated separately, by unit, and assigned times proportionally to the total quantity to be shared out.

The share-outs of the quantities assigned to "simple" works, audiovisual works, and multimedia works will be carried out separately. This assignation will be carried out following the classifications defined and coefficients of value set out in Article 13.4.

14.2 In order to determine the value per minute on television stations with more than one channel, rights will be shared out separately, the share-out of remuneration from broadcasts on each channel being taken into account, remuneration from each channel being segmented or, if such data is not available, calculated by the total audience which each channel has.

14.3 Satellite channels belonging to stations which have digital programming. In such cases, whether broadcasting is open or coded, and when programming on the afore-mentioned satellite channels makes up more than 50% of the programming previously carried out via terrestrial television, rights are shared out using an additional coefficient multiplier equivalent to 15 points on specific works broadcast via satellite. In other cases in which the programming is less than 50%, this coefficient multiplier will be reduced to 3 points.

14.4 Assigning the corresponding quantities will be done as set out in Article 13.4, without this prejudicing possible reciprocal agreements with other copyright collectives, national or foreign, or similar organizations, for the representation of their catalogues and in conformity with Article 163.2 of the IPL.

14.5 Share-out of remuneration from television sets installed in public places.

14.5.1 Determining the works to be included in these share-outs.

Public communication rights to remuneration from televisions installed in public places, as recognised by current legislation, are to be shared between works which have been broadcast during the corresponding periods.

14.5.2 Assignation of quantities depending on the type of works.

From the total quantity to be shared out from each station or channel for works of drama, drama-musical works, works of choreography or pantomime and "simple" works, non-audiovisual and other quantities from audiovisual and multimedia works.

In order to make these calculations and based on the broadcasting data for the six-month period for the share-out, real broadcasting time for works of drama, drama-musical works, works of choreography or pantomime and simple works, as well as non-audiovisual works, will be multiplied by 1.4 and real broadcasting time from audiovisual and multimedia works, both treated separately, and by unit, will be assigned proportionally to the total sum to be shared out.

The respective share-outs for works of drama, drama-musical works, works of choreography or pantomime and simple works, non-audiovisual works, as well as those for audiovisual works, will be carried out separately. These assignations will be made in line with the classifications and evaluation coefficients set out in Article 13.4, using, in the same way, the same method of assignation as described in Articles 14.1 to 14.3, that stated in 14.4 being the one applied.

14.6 Share-out of remuneration from television and cable television organizations.

14.6.1 Rights collected by the Company from television and cable television organizations because of the use of works from its catalogue will be shared out to works in proportion to their use or estimated use and in line with the following norms.

14.6.2 The general norm will apply for sharing out rights collected from all television and cable television stations which pay the Company for communication and reproduction rights annually to a value of more than 150,000 Euros, the Management Board reserving the right to revise this figure whenever it deems fit.

The norm about public communication rights for audiovisual works will also apply for audiovisual works as in Article 14.4.

14.6.3 As stated in Article 85.3 of the Statutes, the sums collected for public communication rights and remuneration from cable television and local television which do not reach the figure stated in the previous paragraph will be shared out in the following way:

14.6.3.1. 20% of these quantities will be accumulated proportionately to the quantities already assigned to works of cinema included in the cinema share-out for the six-month period.

14.6.3.2 75% of these sums will be accumulated proportionately to the quantities assigned to works included in the declarations of use provided by television organizations which are subject to the general norms with regards to share-out.

14.6.3.3. The remaining 25% of these sums will be added to the quantity to be shared out "mechanically" amongst the works as a consequence of disc sales from the catalogue.

Discounts: Administration and remuneration discounts which will be given to rights from television and cable television will be those which are established annually for these types of rights.

However, when they are reverted to be shared out in other types, the discounts for the latter will apply.

14.6.4 However, after each six-monthly invoicing process for rights from stations with remuneration of less than 150,000 Euros per annum, members who consider that their works which have been broadcast exclusively by these stations during the share-out period, and as long as these works have not been broadcast previously by any other station subject to the general television rights share-out, may present a claim to the Company no later than one year after the share-out date along with a signed document about the corresponding broadcaster with the title of the work, the author, the timing in the six-monthly period and the type of use (varieties, theme tune, documentary, etc.), this being applicable to audiovisual works specified in Article 14.4.

In order to make the payments connected with these claims, a theoretical value per minute will be calculated applying a percentage of the lowest value per minute for the television share-out for that six-month period in the corresponding group. This percentage will be determined depending on the rights paid for by the station which broadcast the work and may have the following values:

In order to be able to meet these claims, a percentage of the total paid by these television stations will be used to put together a fund. After a period of one year, the remaining unused quantities will be used for the current six-month period.

Chapter 2-3
Cinemas

Article 15: Share-out system for remuneration from cinemas.

15.1 Public communication rights from cinemas.

Public communication rights from cinemas for works of cinema (regardless of their length) which belong to the EKKI catalogue and have been made use of at such places.

The share-out from these rights will be carried out using declarations about use or weekly programmes provided by cinemas and which will include, at least, the takings for the period in question, the original title of each cinema work shown, the title of each version, the name of the producer and the work's nationality.

The total paid for author's rights in each of the mentioned programmes or declaration of use will be shared out proportionately to the frequency of the works in question being shown. The quantity assigned to each film will be paid, in turn, to the owners of the rights in line with the declaration about the work presented by them to the Company.

If the contents of the programme or the declaration of uses includes any short films (works of cinema which last less than sixty minutes), they will be assigned 5% of the rights collected for each session at which they are projected to complement the main film. However, if, at the same session, various short films are shown, the sum obtained by applying this percentage will be shared out between all the short films in equal proportions.

In order to make payment for the use of EKKI catalogue works at cinemas which support advertising messages shown on the screen (advertising filmlets), a weekly quantity equivalent to 1% will be subtracted from the total. The total of this deduction will be shared in each share-out period between all the filmlets recorded for that period of time, depending on frequency of projection, either using sampling methods or lists.

15.2.1 The share-out system will be that stated in Article 20.4.

15.2.2 If there are unassigned quantities for public communication rights for cinema works, they will be shared out proportionately to all such works subject to this norm which took more than three hundred Euros, fifty-one Cents (300.51) for author's rights, in cinemas, during the five years immediately before the share-out date. This share-out will be called "curriculum bonus".

Chapter 2-4
Live radio broadcast, cable distribution and radio broadcast by satellite of EKKI catalogue works organized by third parties.

Article 16: The share-out system for remuneration obtained from authorization from EKKI for broadcasting or recording and later broadcasting live public communication by third parties, on radio or television, will be subject to the following norms:

16.1 Amounts collected in this way will increase the value of each type of work's programme (varieties, symphonic, human performance, etc.) and will be shared out amongst the works included in each programme.

16.2 The regularity of share-outs for this type of rights will be the same as for public performance and, likewise, applicable discounts will be those in force, in each case, for the type of programme for which rights apply.

Chapter 2-5
Shopping Areas

Article 17: Share-out system for remuneration obtained from shopping areas.

17.1 Rights collected for background music in department stores will be shared out in their entirety amongst all the programmes presented by background music organizations and will be paid every six months with performance invoicing, mechanical performance sub-group, and with mechanical performance rights for copy-distribution.

17.2 The share-out of rights referred to in this article will be carried out assigning 80% to public communication and the remaining 20% to reproduction.

Chapter 2-6
Transformed local versions.

Article 18: Transformed or adapted local versions.

18.1 Concept.

18.1.1 In general, "transformed local versions" will be taken to be those works – both national and foreign, which have been granted sub-edition contracts and, as per this contract's clauses, have been adapted in the sub-edition territory, thus giving place to the creation of a text in a language different from that in which the work was created.

18.1.2 As the general norm for the share-out for these versions – which must be correctly registered by the Company – they will only have rights to remuneration when they are clearly, unambiguously been registered in the Company's share-out documents. In other words, the title of the transformed (adapted) work must be accompanied by the name or names of the transformers (adapters).

18.1.3 Public communication rights include forms of using the catalogue (for example, mechanical performance and radios) in which there is no difficulty in distinguishing between local and original versions as commercial formats are normally used to communicate works and these usually show data about the original authors and the adapters. However, there are other forms of using the catalogue in the sphere of public communication (for example, human performance and varieties in halls) in which it is difficult to distinguish if the version used has been the original or the local version.

Consequently, and because of this difference, there is share-out criteria for catalogue works including works about which there is real uncertainty about the type of version which was actually performed. This criterion is that of only applying the register or declaration of local versions on works which have obtained more than twelve hundred (1,200) Euros in Reproduction-distribution rights (sale of units) or, otherwise, which have collected remuneration for public communication rights of more than six hundred and one Euros (601).

18.2 Transformers (Adapters)

When a member of EKKI registers the transformation of the lyrics of a musical composition into a language other than that in which it was originally written, for which appropriate authorisation has been granted, EKKI may claim the rights to the transformation in any territory in which it is made use of, taking all the necessary steps with both foreign and national organizations.

Chapter 3
Share-out of rights from reproduction-distribution of all types of audiovisual and multimedia works.

Article 19: Share-out of remuneration from the sales of audio, audiovisual and multimedia products

19.1 Share-out systems.

19.1.1 Works included: This section covers all works in the EKKI catalogue which are audio, audiovisual and multimedia products and which are on sale to the public for exclusively private use, or for advertising or promotional purposes, accompanied by literary publications or simply graphics.

19.1.2 Share-out of the paid-up quantities for sales and/or manufacture of audio products: Rights collected by selling and/or manufacturing audio products will be shared out amongst works in the EKKI catalogues in line with the "prorrata numeris" or "prorrata temporis" criterion.

19.1.2.1 Share-out by “prorrata numeris”.

This share-out process is the general one for rights collected for the sales and/or manufacture or audio products and is subject to the following rules:

1st. For formats with two sides (LPs and cassettes), rights are equally shared by each side, the sum obtained later being shared proportionately amongst the number of works from the EKKI catalogue included on each side. If there are EKKI catalogue works on a single side, the rights collected will be shared exclusively for that side.

2nd. The complete works included on each side of the format will be paid the same amount.

3rd. Any copy of a work lasting less than one minute and forty-five seconds will be considered a "fragment" if the whole work is not copied.

4th. If one side of an audio format contains only fragments, the share-out of rights will be divided equally between the fragments, however long they last.

5th. If formats include both complete works and fragments of works, share-out will be done taking each fragment to be worth half a complete work.

19.1.2.2 Share-out by “prorrata temporis”.

This share-out procedure will only apply in the following cases: firstly, when the amounts to be shared out come from the payments of a centralized license, a centralized license, for the effects of this regulation, being one granted within the European Economic Area (EEA) by an organization or body able to do so; secondly, when the amounts to be shared out come from payments of licenses granted by contracts with exclusive authorization; thirdly, when there is obvious disproportion between the length of one or various complete works included on the same side of the format in question and the length, in individual terms, of the other works on it; and, fourthly, when one or both sides of the same audio format contain works which are backgrounds or illustrations for literary works.

“Prorrata temporis” consists of sharing out the amounts collected amongst all the EKKI catalogue works included on the format depending on each one's length. To this effect, the rights collected will be divided by the total length of the EKKI catalogue works on the format. The quotient obtained will be applied to the length of each complete work or fragment in order to determine the rights for each one of them.

19.1.3 Share-out of amounts collected for the sale of audiovisual and multimedia formats.

As a general rule, rights collected for the Reproduction-distribution of protected works included on audiovisual and multimedia formats are shared proportionately to the time which each of them lasts on each format; in order to obtain the quantities, the percentage which the owners or owners of the rights have given in their declarations for the share-out of Reproduction-distribution rights will be used.

Only if the declaration given to EKKI did not include these percentages for Reproduction-distribution would those for public communication be used, as long as the owners had confirmed them as per the type of work (audiovisual, drama, musical, multimedia, etc) reserved for Reproduction-distribution rights in their contract with the producer.

For multimedia formats which only contain a single multimedia work, share-out will be carried out using the principles mentioned above and in line with the declarations given by the owners for the share-out of these works at EKKI.

When a format contains more than one audiovisual or multimedia work, firstly rights collected using the "prorrata temporis" criteria will be shared out amongst all the works on the format. The amounts shared out to each work will be given out to all rights-holders on the work declaration by the percentages given there.

19.1.4 Share-out regularity.

Share-outs of rights from the sale of audio, audiovisual and multimedia formats will take place twice a year, in May and October.

19.2 Television stations

19.2.1 Rights affected by this norm.

Reproduction-distribution rights are those collected from television stations for using simple works, non-audio and non-multimedia, from the EKKI-administered catalogue, for their use in the following ways:

19.2.1.1 Recording them using the organisation's own media and for its own broadcasts, without limit to the number of uses of these recordings.

19.2.1.2 Making copies of the recordings mentioned in the previous section and sending them to other television organizations for them to be used exclusively in the receiver's broadcasts.

19.2.1.3 Public communication of works from the catalogue managed by EKKI on authorized broadcasts in this section using any type of format, legally produced, but not intended for public communication.

19.2.2 Share-out system for these rights.

19.2.2.1 Determining the works for share-out.

The amounts to be received for copyright from television stations will be shared out between the works in GROUP B) in Article 13, with the exception of Section 13.4.2.2 and third-party musical works or those included in audiovisual works, as long as the author or editor has specifically reserved this right.

19.2.2.2 Share-out amongst rights-holders.

These amounts will be shared out in line with the percentages for reproduction-distribution rights as given in the corresponding declaration for the work in favour of each rights-holder for the work in question. If such percentages do not exist, those for public communication will be used.

19.3 Radio stations.

19.3.1 Rights subject to this norm.

Reproduction rights are those which radio stations have in order to make use of simple works, non-audiovisual, belonging to the catalogue managed by EKKI in the following ways:

19.3.1.1 The organizations themselves recording them using their own resources and for their own broadcasts, with no limit to the number of uses of such recordings.

19.3.1.2 Making copies of the aforementioned recordings and sending them to other radio stations to be used a single time in their broadcasts.

19.3.1.3 Public communication of the works from the catalogue in the authorised broadcasts as per this section using any type of format, produced under authorization, but not intended for public communication.

19.3.2 Share-out system for these rights.

The amounts to be received from radio stations as rights on copies for the use of simple works, neither audiovisual nor multimedia, which are part of the EKKI catalogue, will be shared out in the same way as rights for public communication on radio stations, but using the percentages stated in the declaration about the work detailing the various owners for rights on reproduction-distribution. If such percentages do no exist, those for public communication will be used.

19.4 Party rooms, discotheques, musical cafés, concert cafés, Flamenco performance rooms, varieties halls, folk room, musical bars, disco bars, bar and similar establishments.

19.4.1 Rights subject to this norm.

Rights for reproduction are those collected from establishments for the use of simple works, neither audiovisual nor multimedia, belonging to the EKKI catalogue, due to public communication using exclusively audio recordings of such works, reproduced with authorization, but only authorized for private use.

19.4.2 Share-out system for these rights.

The amounts to be collected for Reproduction-distribution rights from the aforementioned establishments will be shared out in the same way used for rights on public communication using mechanical performance, but applying the percentages given on the registered declaration for the work with the various owners to rights on reproduction. If there are no such percentages, those for public communication will be used.

19.5 Cable transmission

19.5.1 Cable transmission of simple works, neither audiovisual nor multimedia, on exclusively audio programmes, background music organizations.

19.5.1.1 Rights subject to this norm.

Reproduction-distribution rights are those collected from background music organizations for using "simple" works, neither audiovisual nor multimedia, from the Company's catalogue, for doing the following with them:

19.5.1.1.1 Recording them using the organization's own resources and for its own cable broadcasts.

19.5.1.1.2 Making copies of the recordings mentioned in the previous section and sending them to other organizations by cable, exclusively audio, for them to be used exclusively in the latter's broadcasts.

19.5.1.1.3 Cable broadcast of works from the catalogue managed by EKKI using any type of format, produced with authorization, but not used for public communication.

19.5.1.2 Share-out system for these rights.

The amounts collected from background music organizations for Reproduction-distribution rights will be shared out in the same way as rights on public communication using mechanical reproduction, but using the percentages given on the declaration about the work specifying the various owners of the Reproduction-distribution rights. If there are no such percentages, those for public communication will be used.

19.5.2 Cable broadcast of "simple" works, neither audiovisual nor multimedia, on their own programmes which are not exclusively audio. Cable and local wireless television stations.

19.5.2.1 Rights subject to this norm.

Reproduction rights are those collected from cable and local wireless television station for using simple works from the catalogue managed by EKKI for the following purposes:

19.5.2.1.1 Recording them using their own resources and for their own cable broadcasts.

19.5.2.1.2 Making copies of the aforementioned recordings and sending them to other cable broadcasters to be used once by the receiving organizations.

19.5.2.1.3 Cable broadcasting of works from the catalogue managed by EKKI, using any type of format, produced with authorization, but not intended for public communication.

19.5.2.2 Share-out system for these rights.

As specified in Article 14.6.2 of this Regulation, the share-out for this type of rights will be carried out as follows:

19.5.2.2.1 75% of the amounts collected for the concept shown will be added to the amounts to be shared out for this same concept from all television organizations subject to general share-out norms.

19.5.2.2.2. The remaining 25% will be added to the amounts to be shared out for mechanical reproduction, amongst the works for sale with audio formats, but using the share-out key for copy-distribution.

For the payment of rights the percentages used for reproduction-distribution on the registered declaration for each work will be used. If there is no such register, the public communication percentages will be used.

19.5.3 Costs for collection and administration.

Administration and collection costs for this type of rights will be those for the modality used for share-outs in each case.

Chapter 4
Bonuses for fixation of works pre-existing in advertising.

Article 20: Bonuses for fixation of already existing works in radio advertising spots, television advertising spots, cinema films, advertising filmlets and original works or works adapted for television.

20.1 Share-out system.

When this type of authorization is managed via EKKI services, bonus amounts, whose amounts are determined exclusively by the owners or original rights owners, is paid to them through EKKI, which subtracts the administration costs established by its governance bodies and relevant taxes.

20.2 For legal claims on synchronisation rights, the claimer will have to accept the costs and expenses of these individual services if they exceed the standard sum to be subtracted.

Chapter 5
Ringtones.

Article 21: Share-outs for ringtones.

Rights produced by the use of the catalogue on a network using digital files in order to download musical works to be used as ringtones will be shared out amongst the digital files provided on a regular basis by the contents supplier in proportion to the number of downloads.

For the share-out of rights, 50% of the total collected for rights to public communication and 50% of rights to reproduction will be assigned. The share-out of both rights will be carried out in the same way but applying the corresponding percentages which are stated in each work's declaration.

When, due to any circumstance, a particular user does not obtain sufficient documentation about the works used, if there is not sufficient data about their correct identification or if the volume of the catalogue to be used may be considered disproportionate in connection with the amounts generated, making the use of the documentation economically inadvisable, the amounts collected will be shared out in proportion to the rest of the codes used in the share-out for the period in question.

The amount subtracted for melodies will be XX% due to development and start-up costs for new documentation systems, licenses and rights share-out.

Chapter 6
The Internet

Article 22: Share-out of amounts collected for the use of works on the Internet.

22.1 Listening to works chosen by users without downloading them to their computers.

Rights generated by online use of the catalogue using a network which is a digital archive on which users can choose to listen to files (streaming), as long as downloading is not possible, will be shared out amongst the works included in the declaration provided on a regular basis by the owners of the license in proportion to the use made of each one. If there is no information about the number of uses, each work will be taken as a proportion of the whole.

For the share-out of rights 75% of the total collected will count as public communication and 25% as reproduction rights.

The share-out of both rights will be carried out in the same way but applying the corresponding percentages which are stated in each work's declaration.

XX% will be subtracted for collection and administration costs.

22.2 Downloading works chosen by users to their computers with or without previous listening.

Rights generated by online use of catalogue works using a network for a digital archive whose purpose is downloading works will be shared out between the works included in the declarations provided on a regular basis by the license owner in proportion to the number of downloads.

For the share-out of rights, 50% of the total collected for rights to public communication and 50% of rights to reproduction will be assigned. The share-out of these two rights will be carried out proportionately to the number of downloads applying the corresponding percentages which are stated on each work's registered declaration.

When, for some reason, a particular user does not provide enough documentation about the works used, if there is insufficient data for the correct identification of the works or the volume of the catalogue to be dealt with, or if the volume may be considered to be disproportionate in relation to the amounts generated, making the use of this data economically inadvisable, the amounts collected described in Sections a) and b) will be shared out proportionately amongst the rest of the works in the share-out.

XX% collection and administration costs will be subtracted.

22.3 Broadcasts of musical works on the Internet without users being able to choose them.

Rights generated by radio broadcasts on the Internet will be added to the quantities already assigned to works included in commercial radio stations' surveys about each six-month period, with the usual deductions applying.

However, when the owner of a license provides sufficient information for correctly identifying works and the volume of the catalogue used, this may be considered to be proportionate to the rights generated and the declaration of uses presented by the license owner will be taken into account.

Likewise, the amounts collected for the broadcast of works on websites, without previous listening being possible, will be shared out.

For the share-out of rights, 75% of the total collected will count as public communication rights and 25% as reproduction rights.

XX% collection and administration costs will be subtracted.

22.4 Television broadcasts on the Internet.

Rights generated for television broadcasts on the Internet will be subject to the norm described in Articles 14 and 19.5.2 in this Regulation.

For the share-out of rights 75% of the total collected will count as public communication and 25% as reproduction rights.

22.5 Audiovisual broadcasts on the Internet.

Rights generated by the use of audiovisual works on demand on the Internet will be added proportionately to the amounts already assigned to cinema works included in the "cinema share" for the same six-month period, with the corresponding deductions applied.

Chapter 7
Private copies.

Article 23. Audio format, share-out system.

23.1 The amounts to be shared out for remuneration for private copies on audio format will be those collected for this reason after subtracting the legal percentage for assistance and cultural activities costs.

23.2 In order to obtain the information needed for the share-out of remuneration for rights, a six-monthly survey will be carried out on men and women of more than fourteen years of age in Spanish territory.

23.3 This survey will be used to obtain information about the source of recordings based on the following variables:

23.4 Having examined all the survey data, it will be used to separate the percentage of domestic recordings from sound recordings taken from radio and Internet broadcasts.

For the first share-out for private copies (for 1992), this percentage will be 80% for private recordings and 20% for radio recordings.

23.5 The share-out of remuneration per private copies of sound recordings will be carried out in proportion to data obtained from settlements from national audio format producers for the period in question (and accrual) depending on:

23.5.1 The ownership of the work as a percentage in each format.

23.5.2 A corrective index based on fractions of the accumulative price list of the total number of units in each format:

23.5.3 The various different types of settlement are:

Each of the works included in the share-out for this reason will be marked on invoices with the accumulated totals on a single line, marked as “C. P. AUDIO-FONOS”.

23.6 Share-out of remuneration for private copies for radio stations must be proportional to imports paid up for each work for radio public communication as per surveys and radio programmes broadcast by different national stations during the share-out period.

Each of the works included in share-out for this reason must be marked on invoices with the amounts accumulated on a single line, marked as “C. P. AUDIO-RADIOS”.

23.7 In order to invoice remuneration for private audio copies, the share-out percentage registered with EKKI for mechanical reproduction must always be used.

In all cases, in order to determine the ownership to which remuneration corresponds, EKKI administration will use the agreements about this area it has legitimately reached with the owners and rights owners of works covered by such remuneration.

23.8 Private copy share-out will be carried out on a six-monthly basis, in March and September each year.

23.9 Remuneration share-out for copies on the Internet must be proportional to amounts paid for each work in the networks-Internet module, as determined by the declarations provided by the owners of the license for the period in question.

Each of the works included in the share-out for this reason must be shown on invoices with the accumulated amounts on a single line, marked as C. P. Audio-M. DGTAL.

Article 24: Share-out system for video formats.

24.1 Share-out amounts for remuneration for private copies in video format will be marked as such after subtracting the legal percentage for assistance and cultural activities costs.

24.2 In order to obtain the information needed to share out remuneration, a six-monthly survey will be carried out amongst men and women over fourteen and resident in Spanish territory.

24.3 This survey will serve to obtain information about at least two basic variables:

24.3.1 The origin of recordings which could be:

24.3.2 The type of recorded material, classified by type (feature films, documentaries, television series, music concerts, works of drama, etc).

24.4 Annually, and after finding out the results of the survey, the information from it will be used to separate the percentage for home recordings from television recordings for "simple works" (audiovisual works, musical works, non-theatre literary works, etc) from those for "complex works".

24.5 Once percentages have been fixed for simple and complex works, these percentages will be used to remunerate the corresponding amounts, taking into account the different types of recordings and the type of material recorded, as specified in Point 3.b).

Pre-recorded tapes in the survey statistics will be excluded, as will types of spaces not administered by EKKI and, in general, human performance, theme tunes and opening tunes, test cards, intermissions, musical backgrounds, advertising spots, short bursts and complementary uses.

24.6 Assigning quantities for simple and complex works will be done separately for simple and complex works, assigning each work in the six-month period being shared out, depending on the origin of each recording and the type of material recorded, an amount proportional to the work's direct share-out for each source of the rights it is due.

24.7 Notwithstanding the above, for audiovisual works the calculation of assignations for private copies will be carried out based on the right to remuneration from the share-out which is taken as the point of reference, the right to entire communication taking into account, purely with regards to share-out, concessions or reservations of rights carried out between physical people and legal people administered by EKKI.

Ultimately, and for this type of works, share-out between owners and rights owners will be done in line with the agreements made between them unless no such agreement exists when the share-out process begins, which would automatically lead to using the subsidiary percentages which EKKI has passed for this purpose.

24.8 For works of cinema, a multiplying coefficient of 2.5 will be used and for other audiovisual works this will be 1.75 as long as the works in question have been published as videos in the terms of the Rewritten Text of the Intellectual Property Law, Article 4 sets for the concept of publishing and which is also included in Royal Decree 1434/1992 of 27th November.

The aforementioned verification will take place using the EKKI publications file or, otherwise, the register existent for this purpose held by the Ministry of Education, Culture and Sports.

24.9 The exclusion of pre-recorded tapes and tapes recorded by private individuals from the share-out system will apply whenever the percentage of the first type of tapes amongst all sources of recordings is no more than 15%.

24.10 For the settlement of rights to private recording, EKKI share-out percentages will be used, as long as they exist, for reproduction-distribution for both simple and complex works. If there are no such percentages, those used for the communication of simple or complex works or non-audiovisual works and for the remuneration of audiovisual works will be used.

In order to effect any payment which affects the owners of works with the right to remuneration for private copying, and in particular for audiovisual works, these rights should be proved in writing to EKKI.

In all cases, in order to determine the ownerships of rights to remuneration for private copies, EKKI administration will take into account the agreements about this matter which have been reached with the owners and rights owners of works subject to such remuneration.

24.11 Share-out for private copies of videos will be carried out on a six-monthly basis, in the months of March and September each year.

Chapter 8
Rights from other copyright collectives both nationally and internationally
.

Article 25: Share-out system.

25.1 Amounts send from other copyright collectives or collecting agencies both nationally and internationally will be treated, depending on their type or the type of owner, as per the norms for reciprocal concessions as foreseen in the regulating text or in the agreements reached between the relevant governing bodies or, if relevant, using norms which can be derived from usual practice.

25.2 The Board, in order to better promote the catalogue abroad, may set preferential administration discounts on amounts generated both outside the Basque Autonomous Community and in other countries, as long as they also establish the necessary systems of finance so that such measures do not harm other catalogues managed by EKKI, as determined in the international representation contracts.

25.3 Rights from other copyright collectives, whether national or not, depending on their type (communication, reproduction, drama, etc) will be paid along with rights collected by EKKI directly for the same type in a single invoice.

25.4 The Company may make claims in name of its members about any of the works and types of work in its catalogue, in all cases respecting the collective's statutory norms sent to EKKI about the county in question's rights and periods of retention.

25.5 EKKI may make deductions and additional payments to settlements from other copyright collectives or collecting agencies from abroad and will always explain its reasons for doing so.

25.6 Payment of rights from other copyright collectives or from abroad and sending rights to other copyright collectives or agencies must respect the norms which are established for such purposes by international organizations of which EKKI is a full member.

III
SHARE-OUT OF AMOUNTS FROM REMUNERATION OF RIGHTS FOR PRIVATE COPIES AND REMUNERATION FOR LOANS FROM AUTHORS AND BOOK EDITORS AND PERIODICAL PUBLICATIONS.

Article 26 General considerations about collecting and share-out for books and periodical publications and remuneration for private copies and loans.

26.1 Settlement and share-out for this reason will be passed and carried out annually by calendar year.

26.2 The general principles of this regulation will be followed.

26.3 In order to identify works and titles for subsequent share-outs, EKKI will have two types of information:

26.3.1 When possible, it will use information provided by those who are going to pay, users of the EKKI catalogue.

26.3.2 Otherwise, it will use information obtained from statistical reports which will be drawn up on a regular basis about use, taking into account the type of work, the volume, material and countries in which material is published.

These reports will be drawn up at the instruction of the technical management and its results, passed by the board at EKKI, will apply to subsequent share-outs until they are updated.

26.4 The amounts which have to be sent to other copyright collectives, whether national or international, will be settled in line with these reports and as fixed by the various contracts for reciprocal representation which EKKI has signed with other copyright collectives.

Article 27: Basis for share-outs.

27.1 As a general rule, share-out will be carried out by assigning a value to each of the works included, in line with the criteria determined by this regulation. This value includes a part for the author and a part for the publisher.

27.2 If a work has more than one owner of the author's side, the amount due to each one will be determined based on their percentage shares which, based on the percentages fixed by edition contracts, they declare to EKKI. If the owner's declaration does not include share percentages, EKKI will assign them in line with the specific rules for this case. These rules must be passed by the Board in line with the regulation norms for communities of goods and any others which are relevant to the case.

27.3 If a work has more than one owner of the publisher's side, the amount due to each one will be determined based on their percentage shares which they declare to EKKI which must be based on agreements between them. If an owner has not fixed a percentage share of a work, EKKI will assign it in line with the specific rules for such cases. These rules must be passed by the Board in line with the regulation norms for communities of goods and any others which are relevant to the case.

27.4 For translated works, the author's part will be shared equally between the author or authors and the translator or translators.

27.5 For collective works and publications in which the editor has legally recognised rights, the amount due to the author will be shared out to the natural or legal person who publishes it or distributes it in his/her/its name, notwithstanding the rights to the same work held by other owners, in which case Article 27.2 will be applied. To this end, owners must have previously declared their share of the author's part of the works to EKKI.

27.6 In order to determine what is understood by the different types of work referred to in the previous points, current legislation will be followed.

Article 28: Remuneration for private copying.

28.1 Sharing out between books and similar publications: considerations.

28.1.1 The net amount to be shared out between the works and national and international publications with the right to receive private copies (books and periodical publications), depending on the percentages given by statistical reports as referred to in Article 26.3.

28.1.2 Share-out will be carried out between the works published in physical format, excluding works published in digital format and without physical format, as established by current legal norms. Share-out will include EKKI catalogue works and other publications for sale during the share-out period. Share-out will be carried out in line with information about the publications, obtained from sector commercial reports, and in line with the following rules.

28.1.3 The amount to be shared out will be shared between works and national and foreign publications and between books and similar publications in line with the proportions given by the report.

28.2 Books

28.2.1 The amount to be shared out will be distributed between books which have been edited or reprinted in Spain in the three years previous to collection, in line with the ISBN/DILVE and ISMN databases.

For reprints, a single reprint per share-out will be taken into account.

28.2.2 Share-out between these works will be carried out as follows:

28.2.2.1 75% of the amount will be shared out between books as per this table of seven types of contents:

  1. Literature.
  2. Teaching.
  3. Scientific-technical.
  4. Biomedical science.
  5. Social sciences.
  6. Humanities.
  7. Others.

And, in line with the percentages obtained from the report, the average price per page for books in each subject will be fixed.

28.2.2.2 The remaining 25% will be shared out between the books depending on their RRP. To this end, the maximum RRP for each book depending on the type of work, and it may be up to 3 times the average RRP for printed books in the group in question.

28.2.3 Once this has been carried out, the amount assigned to each work will be shared at 55% for authors and 45% for editors, as fixed by current legislation.

28.3 Similar publications.

28.3.1 The amount to be shared out for this type of work will be divided up for all publications which, meeting the requisites established by current legislation to receive this type of remuneration, have been published in paper or digital format in the two years previous to remuneration. They must also have been declared to EKKI by their owners before March 1st of the share-out year, specifying the title, number of volumes published or distributed each year, number of pages, price and material.

28.3.2 Share-out will be carried out as follows:

28.3.2.1 25% of the amount to be shared out will be divided between similar publications which are part of the share-out in a single table with 2 groups of subjects:

  1. Cultural.
  2. Scientific-technical.

And in line with the percentage data from the aforementioned report.

28.3.2.2 25% in equal amounts among all the similar publications in the share-out.

28.3.2.3 The remaining 50% in equal amounts between all the volumes of similar publications which are in the share-out.

28.3.3 The economic value assigned to each similar publication (of which 55% will be for the authors and 45% for the publishers) will be handed over to the publishers, who will then give the owner or owners of the author's part their share.

Article 29: Remuneration for loans.

29.1 The net amount to be shared will be calculated by subtracting 20% from each year's remuneration, which EKKI will use for services and assistance for authors.

29.2 As established in Article 26.2, the percentage for administration costs will then be obtained.

29.3 Share-out of the net amount will be carried out assigning a value to each of the works which may receive remuneration in line with the criteria determined by this regulation.

29.4 The amount assigned to each work will be shared out between the owners of the author's rights.

29.5 The amount from the organizations which provide sufficient information for the share-out will be divided amongst the works identified depending on the number of loans of each one of them.

29.6 The amount for identified but unfound owners will remain pending settlement as established by current legislation.

29.7 The amount from organisations which do not provide sufficient information for share-out will be pending assignation to unidentified owners, and will be treated and used as legally required.

Article 30: Share-out of remuneration for the loan from other copyright collectives or abroad.

30.1 Rights with identification of the works in question.

Amounts sent by other national or foreign copyright collectives with sufficient identification of the works will be shared out amongst the owners of those works.

30.2 Rights with identification of the owners in question.

Amounts sent by other national or foreign copyright collectives with sufficient identification of the owners will be directly assigned to them.

30.3 Non-identified rights

Amounts sent by other national or foreign copyright collectives without identification of the works of their owners will become part of the amount of the share-out.

IV
SHARE-OUT OF AMOUNTS FROM THE REMUNERATION OF RIGHTS ON WORKS OF PLASTIC ART.

Article 31: General consideration about remuneration and share-out for works of plastic art.

31.1 Share-out may include amounts received by EKKI which come from the management of rights to works of plastic art belonging to the authors or to those who commissioned the works.

31.2 The general principles established in this regulation will apply.

31.3 Settlement and share-out for this purpose will be approved and carried out annually unless settlement and share-out can be determined previously.

32.4 In particular, it must be possible to assign the amounts collected in an individual manner to the owners (the work which leads to remuneration being identified), and if they form part of the EKKI catalogue, the whole amount collected will be shared out, following legal tax obligations, in the shortest time possible, without waiting for the annual settlement.

If particular works are found and identified, but which belong to other copyright collectives' catalogues, whether national or foreign, the discounts established in reciprocal agreements will be applied.

32.5 For the purposes of this share-out, EKKI will take the necessary steps to identify and locate the owners of the rights. In particular, these rights will include:

32.5.1 Verifying the updated data of EKKI members, as well as updated registers of works and other available registers.

32.5.2 A list of works whose owners have not been identified or found, along with any other information which might contribute to identifying or finding the owners of the rights, will be made available to the members of other copyright collectives and to the public.

32.5.3 EKKI will use statistical procedures or sampling to find out and check the use made of the works, along with the corrective indexes considered appropriate, in order to extend authorizations granted to users, later individual determination of such uses being difficult or not having guarantees of exactitude and certainty.

Article 33: Types of share-out

33.1 Share-outs of the amounts collected will be classified depending on the source of remuneration. With regards to the classification of these sources of remuneration, EKKI carries out the following types of share-out:

33.1.1 Share-out of individual rights

33.1.1.1 This means "share-out for individual rights", the share-out of amounts collected by EKKI for the reproduction, distribution or public communication of authors whose work is part of the EKKI catalogue.

33.1.1.2 The amounts collected for individual rights may be assigned individually to their owners because the works in question are identified and may originate from:

33.1.1.2.1 An individual license, reproduction, distribution or public communication authorised by EKKI for a specific work by a specific author in the catalogue.

33.1.1.2.2 A license contract in which EKKI authorizes the reproduction, distribution or public communication of any of the works of the authors in its catalogue.

33.1.1.2.3 Payment of legal or extra-judicial claims.

33.1.1.2.4 Payments made by national or foreign copyright collectives with which EKKI has contracts of reciprocal representation.

33.1.1.3 The mentioned amounts will be settled with the owners.

33.1.1.3.1 If the owner is an EKKI member, legal taxes will be applied before settlement is made.

33.1.1.3.2 If settlement has to be given to another copyright collectives, whether national or foreign, in the terms of the contract which it has with EKKI, the sum for administration set in the contract will be subtracted.

33.1.1.3.3 If the owner to receive the settlement is not an EKKI member, but has entrusted EKKI with the management of rights through a representation contract, the sum for administration set in the contract will be subtracted.

33.1.2 Share-out of remuneration from television operators.

33.1.2.1 It is understood that "share-out of amounts from television operators" means sharing out amounts which EKKI has collected from licensing contracts which it has with television operators and through which, for a specific period of time, reproduction and public communication of works by any of the authors in the EKKI catalogue is authorized on the said operator's television channels.

33.1.2.2 The amounts collected referred to in the previous section may not be assigned individually to specific rights owners because the works which give rise to remuneration are not identified.

33.1.2.3 Because of this, said amounts must be assigned to their respective owners beforehand.

To this end, EKKI's Audiovisual Department will examine the programming of all the television operator's channels covered by the licensing contract and register in EKKI's databases the use of works by authors in the EKKI catalogue.

Likewise, EKKI will send its members and represented rights owners the information obtained by this examination, along with standard forms to fill in with additional information about the use of works by television operators on their channels and which were not known to EKKI.

EKKI will also have information provided by the television operators on the forms which it provides for this purpose and which give access to detailed information about the degree of use of the works involved in the share-out.

Information provided by members, owners represented and television operators will be verified by EKKI's Audiovisual Department.

33.1.2.4 Once all the information has been collected and after determining the percentages to cover possible claims due to lack of identification of owners or works, as well as the percentage to be subtracted for administration costs for this type of works, assignment will be direct and proportional to the real use of the works of authors in the EKKI catalogue.

To this end, the amount which EKKI should have received for each use of the works of authors in the EKKI catalogue by the television operators will be taken into account, bearing in mind technical characteristics such as the way in which each work is used, the channels' viewer type, the type of programme, the type of use of the work in the programme, whether it is the first or second broadcast of the programme.

Then the amount settled by the television operator, after subtracting the amounts previously mentioned, will be divided amongst all the quantified uses in proportion to the value of each use as per EKKI's general rates.

At the same time and in order to ensure fair and proportional share-out, an annual limit of 50 uses of the same work in the same programme is fixed, so that if the same work is used more than 50 times in a single programme during one year, those uses above 50 are not assigned any value.

In this way, the amount assigned is determined taking into account the amount which EKKI would have received by applying its general rates for the use of the works by the television operator, the set of works shown on the operator's channels as covered by its contract with EKKI, and the amount settled with EKKI by the operator in question.

33.1.2.5 The quantities for each owner will be paid once they have been assigned.

33.1.3 Share-out of remuneration from operators who broadcast their programme via satellite or cable

33.1.3.1 This means "share-out of amounts from operators who broadcast their contents via satellite", the share-out of amounts collected by EKKI from licensing contracts with operators and through which there is authorisation for a determined period of time for the reproduction and public communication of any of the works in the EKKI catalogue on the channels belonging to these operators via satellite to those who pay for this service.

Share-out of amounts received from operators who broadcast via satellite is understood to be the share-out of amounts which EKKI has collected from licensing contracts which it is signed with such operators and with which it authorises the reproduction of EKKI catalogue authors' works for a determined period of time and public communication of the visual work of authors, whether members of EKKI or not, on television channels which the said operators broadcast to subscribers to their cable service.

33.1.3.2 The amounts collected referred to in the previous section will not be assigned individually to particular members because the works which give rise to this remuneration are not identified at the point of origin.

33.1.3.3 The method of verification for the use of works by operators who broadcast via cable is the same as that used for television operators, as described in Section 8.3 of the previous Article.

For operators who broadcast their programmes via cable, authorization for public communication must be managed via a copyright collective and, consequently, EKKI manages the rights for all authors of visual works, whether members of EKKI or not.

The method of verification for the use of works by operators who broadcast via cable is the same as that used for television operators, as described in Section 8.3 of the previous Article, although the following, too, must be taken into account:

33.1.3.3.1 EKKI will also have information provided by visual authors' sector associations in the Spanish state and its autonomous communities and its users as provided on the forms which it makes available for this purpose, which make it possible to obtain detailed information about the use of visual works on operators' various channels for cable broadcasting.

33.1.3.3.2 Once all the information has been gathered and after separating the fixed percentage for covering possible claims due to the lack of identification of the owners of works or of their rights, as well as the percentage for management expenses for this type of use, remuneration will be assigned in direct proportion to the real use of works by visual authors, whether members of EKKI or not, in line with the rules established in Article 33.1.2.4.

33.1.3.4 The amounts due to each member will be settled once they have been assigned.

33.1.4 Share-out of participation rights

33.1.4.1 To the effects of this Regulation, "share-out of participation rights" is understood to be the share-out of amounts collected by EKKI for participation rights to the re-sale of authors' works from their catalogue in which an art market professional takes part as the purchaser, seller or intermediary as stated in Law 3/2008 of 23rd December about Participation Rights.

33.1.4.2 Amounts collected for participation rights will be settled with the owners of rights to each work which may be re-sold.

If the owner is a member of EKKI, and has been since before the settlement, the percentage for administration expenses established by the Board for participation rights will be subtracted.

If the settlement is to be made in favour of an author's society from another country, in the terms of its agreement with EKKI, the percentage for management expenses set by the contract between them will be subtracted.

Likewise, if the party receiving the settlement is not a member of EKKI, and has entrusted the management of his/her rights to EKKI with a representation contract, the percentage for management expenses set by the contract between them will be subtracted.

33.1.4.3 The Board of Administration, when drawing up and passing the calendar for sharing out these rights, will take into account the settlement times set by Article 7, Sections 3 of Law 3/2008 of 28th December about participation rights for authors of original works.

33.1.5 Share-out of fair remuneration for private reprographic copies of works.

33.1.5.1 To the effects of this Regulation, "remuneration for private reprographic copies of works" is understood to be share-out for amounts collected by EKKI for fair remuneration for private copies of visual works distributed in books and similar publications.

In line with the relevant norms, publications similar to books will include publications with cultural, scientific and technical contents as long as:

33.1.5.1.1 They are edited in a continual series under the same title, at regular or irregular intervals, in such a way that each volume has consecutive numbers or dates, with monthly frequency at most and weekly at least.

33.1.5.1.2 There must be at least 48 pages per volume.

33.1.5.2 Amounts collected referred to in the previous section will not be assigned individually to specific owners as the works which gave rise to this remuneration are not identified.

33.1.5.3 Due to this, before settlement these amounts must be assigned to their respective owners.

To this effect, EKKI will gather the information it has from its own sources, such as licenses granted and contracts signed in connection with the reproduction of the works of authors from its catalogue in books or similar publications during the year previous to the share-out.

EKKI will also contact its members, the owners it represents due to representation contracts, foreign copyright collectives with which EKKI has representation contracts, as well as visual authors' sector associations in the Spanish state and its autonomous communities in order to obtain information about the reproduction of visual works in books or similar publications during the year previous to the share-out.

Information will be obtained in the following way:

33.1.5.3.1 Members of EKKI, owners represented by EKKI through representation contracts, and foreign copyright collectives with which EKKI has representation contracts, will be sent previous information available to EKKI about the reproduction of works in the year previous to share-out in books and similar publications, along with a form to fill in for the authors in order to provide information about the reproduction of their works during the said period and which has not been given in the information provided. These forms will identify, amongst other things, at least the author, his/her ID or tax number, the format on which the work has been reproduced, ISBN, ISSN and legal deposit.

33.1.5.3.2 With regards to authors who are not EKKI members, in addition to the information which is always available on the EKKI website and various means of communication, EKKI will contact professional associations and provide them with the form for them to give information about their authors over the following three months.

33.1.5.4 After identifying the use of the works as mentioned above, and after removing the percentage set for possible claims due to lack of identification or the work or works, as well as the administration expenses for this right, the amounts collected will be assigned.

To this effect, taking into account the number of works reproduced in books and similar publications and the amount to be shared out, a point system for works will be set up, giving a point for each use, with the following limitations:

33.1.5.5 Once the amounts have been assigned and the share-out for them has been fixed, settlement will be made.

33.1.6 Share-out of fair remuneration for private copies of audiovisual works.

33.1.6.1 "Share-out for private copies of audiovisual works" is share-out for amounts collected by EKKI as fair remuneration for private copies of visual works distributed as videos or in other visual or audiovisual formats.

33.1.6.2 For the share-out of these amounts, the same rules set for private reprographic copies will be used with the following variations:

The information requested from EKKI members, from owners represented by EKKI through representation contracts, foreign copyright collectives with which EKKI has representation contracts, and professional associations, will be with regard to the public communication of works by visual artists using channels made available by television, cable and satellite operators.

33.1.7 Share-out of remuneration per licensed copy.

33.1.7.1 To the effects of this Regulation, "share-out for licensed copies" is understood to be share-out of the amounts collected by EKKI for licenses granted to educational centres, copy shops and companies which copy, distribute or make public visual works by authors in the EKKI catalogue and which are in text books, university manuals and other publications.

33.1.7.2 For the share-out of these quantities, the same rules established for private reprographic copying will apply.

33.1.8 Share-out of remuneration for public loans.

33.1.8.1 To the effects of this Regulation, "share-out for public loans" is understood to be share-out of amounts collected by EKKI as remuneration for the loan of visual works which are in books or audiovisual recordings made by museums, archives, libraries, newspaper and periodicals libraries, sound archives or film libraries which are public or which belong to public interest cultural, scientific or educational non-profit bodies or educational institutions which are part of the Spanish education system.

33.1.8.2 For the share-out of these amounts the same rules set for private reprographic copies will be followed.

V
SHARE-OUT OF AMOUNTS FOR ARTISTS' AND PERFORMERS' RIGHTS REMUNERATION

Article 34: General considerations for collective remuneration and share-out which may apply to the owners of rights such as performing artists and performers at events, or the owners of their rights.

34.1 Amounts collected by EKKI and which come from artists' and performers' rights are subject to being shared out.

34.2 In general, the principles set by this regulation will be followed.

34.3 Settlement and share-out for these reasons will be passed taking into account particularly that this remuneration takes place on a regular basis along with others and, as there is a single treasury for collective remuneration, the amounts to be shared out must be established beforehand.

34.4 With particular reference to amounts collected which may be assigned individually to their owners (the works with give rise to remuneration having been identified), if they are registered are part of the EKKI catalogue, the entire share-out of the amount collected will be carried out applying all legal taxes to them in the shortest time possible and without waiting for the annual share-out.

If particular works are found and identified, but which belong to other copyright collectives' catalogues, whether national or foreign, the discounts established in reciprocal agreements will be applied.

Article 35: Performance declarations

35.1 EKKI members with the right to remuneration for performances are obliged to register with EKKI previously, and exclusively performances used in audio, visual or audiovisual form and over which they have any of the intellectual property rights subject to collective remuneration and, in particular, to being managed by a copyright collective, whether directly by the owners or by the owners of the rights.

35.2 The declaration must be carried out either using the declaration sheet provided by EKKI or a declaration giving at least the following data:

35.2.1 Identification of the EKKI member.

35.2.2 Description of the audio, visual or audiovisual format on which the performances declared are to be found.

35.2.3 Owner of the performance or work.

35.2.4 Identification of the physical or legal person using the performance: television station, record company, video company, etc.

35.2.5 Video or sound recording reference, if possible.

35.2.6 Year of recording and publication.

35.2.7 Whether done as an individual or as a member of a group and whether a performer, a reproducer or both.

35.2.8 The names of other participants in the event, the name of the artist(s) and/or main artistic group, participants in the event, actors, directors or scriptwriters of the videos and other audiovisual recordings.

35.2.9 Voice and/or instruments played. This section must also provide:

35.2.9.1 Artists or solo artists (without any reproducer taking part)

35.2.9.2 Group of reproducers without directors or performers.

35.2.9.3 Orchestra conductor.

35.2.9.4 Solo reproducer.

35.2.10 The total number of musical performed and conductors taking part in the event if recorded. Performers will declare each event on a single Declaration Sheet which must be signed by all to show their agreement and, in particular, their participation percentage. This same rule applies to musical recording directors and single reproducers and their collaborators.

This requisite is indispensable except in cases of proven impossibility determined by the Permanent Commission in which, at least, the identity of the artists who do not sign the Declaration and their participation percentages must be given. In all cases, recording musical directors must give the names of at least four artists they have directed at each event.

For fixed events played by large groups (orchestras, choirs, bands, etc), the declaration handed in and signed by the representative named by the performers who have taken part in the event will be taken as valid, as established in Article 111 of the IPL, and on which the representative, in addition to the data required by these Share-out Norms, including the names of all the performers or the group which has taken part in the event being declared.

The declaration must be accompanied by a copy of the document confirming the appointment referred to in the previous paragraph and the declarer's signed declaration that it is in force.

35.2.11 Duration of the event.

The timing of events will follow these guidelines:

35.2.11.1 The general criteria is that musical performances last an average of 3.5 minutes.

35.2.11.2 All performances which last between 1 second and 6.59 minutes will be taken as single performances. Audiovisual recordings will be exempted from this, being evaluated in the terms of Article 36.

35.2.11.3 Performances which last longer will be divided into 3.5 minute blocks; if the division is not exact, the remainder will be considered to be another performance.

35.2.12 A sworn declaration from the member stating that the information provided is correct, exact and faithfully reflects participation in the performances being declared.

35.3 EKKI, in order to complete the data provided in individual declarations from members, may request the data needed to be able to identify performers who have taken part in the events from any organizations or institutions which have such information. If required, this information will be collected on a regular basis.

EKKI may also obtain direct information or information from third parties in order to complete members' declarations.

Notwithstanding the above, members may check and examine such notes.

Article 36: Share-out of collective remuneration from rights managed by EKKI for performances and reproductions.

36.1 Public playing of audio material.

Once the deductions mentioned in Article 6 of these norms have been made, the net amount from remuneration for public communication of audio materials will be shared out as passed by the Administration Board as follows:

36.1.1 Up to a maximum of 10% for the existing Historical Archive.

In order to determine share-out for the Historical Archive, the first fixed performances declared by members before the share-out date will be used as the basis.

Audio recordings old enough to be considered historical will form part of the Historical Archive. The conditions for being included in the Historical Archive will be those determined by the Administration Board annually.

36.1.2 Once the percentage for the Historical Archive has been determined in line with Section 36.1.1, the remainder will be assigned to the events fixed as per information from surveys, public communication data and sales lists (including digital formats), amongst other possible sources.

36.2 Private audio copies.

Once the deductions set by the general principles of this regulation have been made, the net amount from remuneration for private audio copies will be shared out, after being passed by the Administration Board, as follows:

36.2.1 Up to a maximum of 10% of the existing Historical Archive.

In order to determine share-out for the Historical Archive, the first fixed performances declared by members before the share-out date will be used as the basis.

Audio recordings old enough to be considered historical will form part of the Historical Archive. The conditions for being included in the Historical Archive will be those determined by the Administration Board annually.

36.2.2 Once the percentage for the Historical Archive has been set, in line with Section A above, the remainder will be assigned to fixed events, as per the information from periodical statistical reports about domestic recordings, sales lists (including digital formats), surveys and users' data and data from different media, amongst other possible sources.

These reports will be used to assign fixed events, as follows:

36.2.2.1 The periodical statistical report will be used to obtain the source used in domestic recordings: audio recordings, radio and various media.

36.2.2.2 Domestic audio recordings includes assigning economic rewards to fixed events in audio recordings, to be established in proportion to sales data for the period under consideration.

36.2.2.3 As part of the section for domestic recordings from radio stations, the assignation of economic rewards to fixed events in audio recordings will be established in proportion to surveys and radio programme data given for the period in question.

36.3 Availability of audio recordings.

Once the deductions established by Article 6 of these norms have been made, the net amount from the remuneration for making audio recordings of fixed events available will be shared out as passed by the Administration Board as follows:

36.3.1 Up to a maximum of 10% of the existing Historical Archive.

In order to determine share-out for the Historical Archive, the first fixed performances declared by members before the share-out date will be used as the basis.

Audio recordings old enough to be considered historical will form part of the Historical Archive. The conditions for being included in the Historical Archive will be those determined by the Administration Board annually.

36.3.2 Once the percentage for the Historical Archive has been determined, in line with Section A above, the remainder will be assigned to the fixed performances as per information from surveys, public communication data and sales lists (including digital formats), amongst other possible sources.

36.4 Public communication of audiovisual recordings

36.4.1 Classification:

Previous to the distribution of economic rewards, the following categories or classifications are set within Audiovisual Recordings:

36.4.1.1 Audiovisual works: Made up of the following types of audiovisual recordings:

36.4.1.2 Audiovisual Spaces: Made up, amongst others, by the following types of audiovisual recordings:

36.4.1.3 Advertising spaces

In each of the previous categories or classifications there are different classifications:

36.4.2 Share-out:

Once the deductions established by the general principles of these Regulations have been taken out, the net total of the remuneration for public communication or audiovisual recordings will be shared out, as agreed by the Administration Board, in the following way:

36.4.2.1 Up to a maximum of 10% for the existing Historical Archive.

In order to determine share-out for the Historical Archive, the first fixed performances declared by members before the share-out date will be used as the basis.

In order to assign quantities from the Historical Archive to fixed performances in audiovisual recordings or audio recordings in them, the same modalities from Section 36.4.2.2 will be taken into account and the same share-out criteria will be used.

Fixed performances in audiovisual recordings and/or audio recordings in them will be part of the Historical Archive, as long as they are old enough to be considered historical. The conditions for being included in the Historical Archive will be those determined by the Administration Board annually.

36.4.2.2 Once the percentage for the Historical Archive has been determined, in line with Section 36.4.2.1 above, the rest will be assigned to fixed performances depending on information taken from surveys, programming from different users, public communication data and sales lists (including digital formats) amongst other possible sources.

The information obtained will serve as the basis for calculating the importance of each of the groups or classifications defined in Article 36.4.1 and, so, the economic rewards for each of them.

These assignations will be fixed annually by the Administration Board, taking into account time slots, bonuses for first showings and other appropriate criteria for such purposes.

In the share-out of remuneration from cinemas, the amount assigned to each audiovisual recording will be proportional to what it has taken.

In order to assign net economic rewards to fixed performances in audiovisual recordings, each one's duration will be taken into account, except for incidental music, which will be assigned:

36.4.2.2.1 A value of 35 minutes if the audiovisual recording lasts 60 minutes or longer and the number of fixed performances is less than 7.

36.4.2.2.2 A value of 17.5 minutes if the audiovisual recording is less than 60 minutes or, with duration of more than 60 minutes, if the number of fixed performances more than 6.

Fixed performances in audiovisual recordings which are not audiovisual works will be assigned quantities depending on public communication data for audio recordings used in Section 1 of this Article. This rule will not apply to fixed performances considered to be theme tunes, identifying music, intermissions, musical background or bursts.

The Administration Board, taking into account documentation costs for share-out, may annually determine a minimum threshold for users' remuneration. Economic rewards from users who do not surpass this threshold will be shared out proportionately amongst the rest.

36.5 Private copies of audiovisual recordings.

Once the deductions established by the general principles of this Regulation have been taken out, the net total of the remuneration for public communication or audiovisual recordings will be shared out, as agreed by the Administration Board, in the following way:

36.5.1 Up to a maximum of 10% of the existing Historical Archive.

In order to determine share-out for the Historical Archive, the first fixed performances declared by members before the share-out date will be used as the basis.

To assign amounts from the Historical Archive to fixed performances in audiovisual and/or audio recordings included in them, the same modalities used in Section 36.5.2 and the same share-out criteria will be used.

Fixed performances in audiovisual recordings and/or audio recordings in them will be part of the Historical Archive, as long as they are old enough to be considered historical. The conditions for being included in the Historical Archive will be those determined by the Administration Board annually.

36.5.2 Once the percentage for the Historical Archive has been determined, in line with Section A above, the remainder will be assigned to fixed performances as per the information from the use of material and audiovisual reproduction devices by the users, amongst other possible sources.

The basis for net economic reward share-out derived from this right will be determined using a periodical statistical report, which will be used to obtain:

36.5.2.1 The percentage of domestic recordings for each source of recordings, in other words:

36.5.2.2 The type of material recorded, in other words, the percentage of recording for each type of production depending on its characteristics (cinema, series, musical programmes…)

36.5.3 The assignation of each audiovisual recording will be determined by:

36.5.3.1 The percentage for the sources of recording uses in domestic recording, except for that of pre-recorded tapes and recorded by private individuals in the survey.

The exclusion of sources of recording for pre-recorded audiovisual recordings will apply as long as the percentage of the total is no higher than 15%.

36.5.3.2 The percentage of domestic recordings of each type of production.

36.5.3.3 The duration of audiovisual recordings in proportion to the total of the type of production under examination.

36.5.4 In order to assign total economic rewards from fixed performances in audiovisual recordings each of their lengths, in proportion, will be taken into account, except for incidental music, which will be assigned:

36.5.4.1 A duration of 35 minutes if the audiovisual recording lasts 60 minutes or longer and the number of fixed performances is less than 7.

36.5.4.2 A duration of 17.5 minutes if the audiovisual recording is less than 60 minutes or if it is more than 60 minutes and the number of fixed performances is greater than 6.

36.5.5 Fixed performances in audiovisual recordings which are not audiovisual works will be assigned quantities depending on public communication data for audio recordings used in Article 36.1. This rule will not apply to fixed performances considered to be theme tunes, identifying music, intermissions, musical background or bursts.

36.6 Audiovisual recordings rental

Once the deductions established by the general principles of these regulations have been taken out, the net total of the remuneration for public communication or audiovisual recordings will be shared out, as agreed by the Administration Board, in the following way:

36.6.1 Up to a maximum of 10% of the existing Historical Archive.

In order to determine share-out for the Historical Archive, the first fixed performances declared by members before the share-out date will be used as the basis.

In order to assign amounts from the Historical Archive to fixed performances in audiovisual recordings and/or audio recordings included in them, the categories and classifications from Article 36.4.1. will be used.

Fixed performances in audiovisual recordings and/or audio recordings in them will be part of the Historical Archive, as long as they are old enough to be considered historical. The conditions for being included in the Historical Archive will be those determined by the Administration Board annually.

36.6.2 Once the percentage for the Historical Archive has been determined, as per Section A above, the remainder will be assigned to the fixed performances as per information from the remuneration which each audiovisual recording has given rise to.

In order to assign the total economic rewards to the fixed performances in audiovisual recordings, the proportion of each one will be taken into account, except for incidental music, which will be assigned:

36.6.2.1 A duration of 35 minutes if the audiovisual recording lasts 60 minutes or longer and the number of fixed performances is less than 7.

36.6.2.2 A duration of 17.5 minutes if the audiovisual recording is less than 60 minutes or if it is more than 60 minutes and the number of fixed performances is greater than 6.

34.7 Making audiovisual recordings available.

Once the deductions established by the general principles of this Regulation have been taken out, the net total of the remuneration for public communication or audiovisual recordings will be shared out, as agreed by the Administration Board, in the following way:

36.7.1 Up to a maximum of 10% of the existing Historical Archive.

In order to determine share-out for the Historical Archive, the first fixed performances declared by members before the share-out date will be used as the basis.

In order to assign amounts from the Historical Archive to fixed performances in audiovisual recordings and/or audio recordings included in them, the same categories or and classifications used in Article 14 Section IV A) will be used.

Fixed performances in audiovisual recordings and/or audio recordings in them will be part of the Historical Archive, as long as they are old enough to be considered historical. The conditions for being included in the Historical Archive will be those determined by the Administration Board annually.

36.7.2 Once the percentage for the Historical Archive has been determined, in line with Section A, the remainder will be assigned to fixed performances as per the information from the surveys, programme schedules from different users, public communication data and sales lists (including digital formats) amongst other possible sources.

In order to assign the total economic rewards to the fixed performances in audiovisual recordings, the proportion of each one will be taken into account, except for incidental music, which will be assigned:

36.7.2.1 A duration of 35 minutes if the audiovisual recording lasts 60 minutes or longer and the number of fixed performances is less than 7.

36.7.2.2 A duration of 17.5 minutes if the audiovisual recording is less than 60 minutes or if it is more than 60 minutes and the number of fixed performances is greater than 6.

Article 37: Share-out depending on whether the group or groups are the owners of the rights.

37.1 General norm. Share-out of total economic rewards collected from the rights managed by EKKI will be as follows:

37.1.1 60% for performance, shared out depending on participation in the performance described in the declaration. If there is no specific agreement, it will be shared out in equal parts.

37.1.2 49% for performance, shared out in equal parts, a per the proportion of participants in this category. This average will be calculated based on a periodical report on performances announced, and will be fixed by the Administration Board.

37.2 Exceptions. For mixed fixed performances the following criteria will be followed:

37.2.1 Fixed performances will be understood to be those which introduce a new performance in one or various already existing.

37.2.2 Share-out, unless expressly stated to the opposite, will involve:

37.2.2.1 30% for artists who have taken part in the new fixed performance.

37.2.2.2 70% for artists who have taken part in the existing fixed performance(s).

37.2.3 Share-out between performance and reproduction, in each case, will be done following the General Norm described in Section 1 of this Article.

37.3 Qualifications

37.3.1 General norms:

37.3.1.1 Artists who, in a significant manner, act, sing, read, recite, declaim or interpret in any way a literary or artistic work, an audio recording, an audiovisual recording, a piece of folklore or any other act which may have rights will considered to be performers.

Soloists and orchestra conductors are included in this group.

37.3.1.2 Artists who accompany the performances of one or various performers by acting, singing, reading, reciting, declaiming or reproducing, in any way, a literary or artistic work, an audio recording, an audiovisual recording, a piece of folklore or any other act which may have rights will be considered to be accompaniers. Members of orchestras and choirs are included in this group.

37.3.1.3 Artists who conduct four or more musicians who take part in a single fixed performance, at which there is no orchestra conductor or single accompanier, will be considered to be Recording Musical Directors.

Exceptionally, there could be various Recording Musical Directors in a single fixed performance.

Recording Musical Directors will receive twice the amount which accompaniers in fixed performances receive.

There are no performances without performers, notwithstanding conditions for fixed performances in karaoke format in Section 37.3.3 of this article.

37.3.2 Specific Norms. Orchestra Conductors and Stage Directors will be considered to be performers.

Both Performers and Accompaniers may be so individually or in groups. There are particular groups, which are variable in number of members, which take part in a performance and in which the following conditions exist:

37.3.2.1 There is no director.

37.3.2.2 There is no main performer.

37.3.2.3 The group is no accompanying an artist's outstanding performance.

Choir directors are considered to be Recording Musical Director when there is an Orchestra Conductor. When there is not, he/she will be considered to be a Performer.

Performers who are soloists without performing an accompaniers in the performance or a group of performers or soloists without performing an accompaniers in the performance have the right to receive 100% of the economic rewards from fixed performances in audio recordings.

37.3.3 Fixed performances in karaoke format:

37.3.3.1 For performances or reproductions in karaoke format to create rights they must have been published for commercial purposes and used publicly.

37.3.3.2 For karaokes carried out using existing fixed performances, the declaration for the previous fixed performance will be used.

If there is no main performer, or if he/she is replaced by an accompanying voice, the artist who gives the accompanying voice will be considered to be an accompanier and, so, receive all the pre-existing economic rewards for the accompanying voice. These fixed performances will not be taken into account for the share-out of the Historical Archive.

37.3.3.3 If the karaoke is an improvised performance, all the performers will be considered to be accompaniers and will receive 100% of the economic rewards.

37.3.4 Sole accompanier:

37.3.4.1 A Solo Accompanier, with regards to share-out, means an artist who has produced material and all the contents of a performance personally. This category will be maintained up to a maximum of three individual collaborations (with human performance) in the same performance.

37.3.4.2 Artists who declare themselves to be Solo Accompaniers in a performance must declare themselves to be so, filling in and signing the Declaration Sheet. This will show the names and surnames of the collaborators, if there are such, who must sign the Declaration Sheet in order to express their agreement.

Artists who declare themselves to be Solo Accompaniers are responsible for the veracity and exactitude of the data on the Declaration Sheet.

37.3.4.3 Solo Accompaniers receive three-quarters of the total for the performance.

37.3.5 The quantities assigned to each performance will be shared out between the owners of the rights, as they themselves have stipulated on declaring their performance.

VI
SETTLEMENTS, SHARE-OUTS, DELAYS AND CLAIMS

Article 38: Maximum periods for receiving documentation for share-outs.

38.1 All rights share-out processes will have a limit date for being included in the settlement of said rights.

38.2 For the settlement for rights on the public communication of major works, declarations about the use of catalogue works and claims on any period of the previous share-out will have to be available to the relevant department at least a month before the date fixed for paying amounts into members' accounts.

This deadline is also applicable to declarations about works which may be dealt with in the appropriate settlement.

38.3 With regards to the settlement of rights on public communication and reproduction-distribution of works with lesser rights and multimedia, the deadline for accepting declarations about use will be six months before payment date, unless expressly authorized by EKKI management.

Claims, however, will be accepted up to three months before the mentioned date, as will declarations about works which may be dealt with in the settlement period.

38.4 These periods may be modified if so agreed with EKKI management and its administration body.

Article 39: Share-out of delayed rights

39.1 When, as a consequence of a delay in payment of rights to a user or of lack of documentation, share-out is carried out at a later date than would have been normal for their share-out, this share-out will be subject to the norms and principles which were in force when the share-out should have taken place within the usual time period unless, due to technical or administrative impossibility, this is impossible.

39.2 Furthermore, the declaration about the work or register documentation in force at the time when the rights were due, unless such use is economically expensive, administratively complex or of social indifference, in which case the rights will be shared out in line with the existing documentation at the time of paying the rights.

Article 40: Rights reserve fund during the share-out process.

The Operations Department, whenever necessary, will suggest to EKKI Management having a reserve fund, as an item of right, of a percentage of the amount due for share-out in order to meet any claims that might be made for works not included on the programme sheets or use declarations. In any case, the quantities established must be reintroduced into later processes, although they will always be shared out to the works for which the reserve fund was made, unless the amounts are small are were due to be shared out long in the past and these factors make it economically inadvisable, administratively complex and of social indifference.

Article 41: Claims about payments and settlement of rights.

41.1 The right to make claims.

All members administered by EKKI have the recognised right to present claims about settlements carried out, about the payment of any type of rights and about the state of the catalogue, while it is understood that to do so they must follow the norms and precepts quoted in the following Articles.

Any claim presented outside the time frame and way explained below will be interrupted during the resolution process.

41.2 Works pending documentation.

After each share-out of rights and after no more than three months, EKKI, at its various offices, will make available to all its members information about works which have not received payment in the usual share-out because of lack of documentation about them. Any member of EKKI can examine this information either in print or in electronic format.

All EKKI members can also check all the declarations of use which have been made use of to share out rights as long as they make their request fifteen days in advance and provide data about the settlement.

41.3 Claim periods

Claimants for works not documented in the usual share-out period have up to five years, from the payment date for the share-out in question, to make claims. After that period, collections for rights for such works prescribe in favour of EKKI and its objectives, as established in its Statutes.

41.4 Claims service

41.4.1. EKKI has a Claims Area in its offices where EKKI members can present any claims which affect share-out of collective remuneration which may affect their rights and ownership.

To do so, claimers will use the forms available for such purpose, and this Area will deal with and resolve claims, in writing, within the shortest possible period. In all cases, the resolution of claims must be explained and given to the claimers.

Notwithstanding the above, the Claims Area at the central office will have the mission of systematically and periodically reviewing the lists of works pending documentation, informing possible rights holders about the situation and suggesting that they register them as appropriate or provide the relevant documentation.

41.4.2 Any claims, clarifications or additional information which may affect the state of the catalogue will be sent to the Company's Documentation Area.

41.4.3 The Claims Area's resolution may be questioned in the Area itself, requesting it be examined, within a period of thirty days, giving details of the reasons for this request, while understanding that if the initial resolution is upheld, expenses for the second claim will be met by the claimant.

41.4.4 Before the end of the tax year, this Area will suggest the quantity of rights for works not properly documented to the Operations Department Director who, in turn, will inform the Economic-Financial Director, who will use this amount for EKKI's work as established in its Statutes.

41.4.5 Rights from claims favourable resolved by the Claims Area will be paid to the claimants on the next share-out date after the claim is resolved, while taking into account the share-out final dates.

Notwithstanding the above, the Board of Directors, at the proposal of the Members' Department Director, is able to authorise the payment of known quantities for favourable resolutions and which, due to exceptional and sufficiently justified reasons, cannot wait until the next share-out date for payment.

41.5 Debits and payments.

EKKI can make debits and payments in members' accounts following these norms:

41.5.1 When, as a consequence of the modification of the declaration about an existent work at EKKI, for reasons which the Company is not answerable to, there arises a need to pay rights to an owner who, until that moment, had not been recorded in the declaration in question, or whose percentage had not been correct, the Company will make said payment, at the same time debiting the account(s) or the member(s) who had been paid incorrectly for the rights in question.

This obligation to debit may be carried out for a maximum period of fifteen years from the legalization of the register.

In order to carry out this type of debit or payment, the explicit agreement of all involved is required or, otherwise, the Operations Department Director will suggest to the Board of Directors keeping back the rights generated by the work(s) until a final legal sentence about it or agreement between all parties is obtained.

In all cases, payments will be made when it is possible, at the same time, to debit the accounts in credit of the member(s) who received the rights incorrectly.

41.5.2 If, as the result of a delay in the declaration of a work affected by a publisher's contract, the owner negatively affected by the delay claims the payment of his/her rights which have already been paid to another member in previous share-outs, and, to this end, calls for the use of the debit and payment systems, the Company will only carry out this rectification on settlements to be made after the claim and for the works affected by said contract.

These debits and payments will be applied following the second paragraph of Norm 41.5.1 and those affected will be notified.

41.5.3 Advance payments on the amounts to be paid by debit and payment will not be made.

41.5.4 When correction requested following Norms 41.5/1/2 is required because of administrative errors which EKKI may have been responsible for, the payment will be made automatically, without applying Section 41.5.3.

41.5.5 When, for reasons which may be attributed to members of EKKI, it is necessary to make payments to other foreign copyright collectives, the EKKI member or members responsible will repay the Company the amounts which it will be obliged to pay the collectives mentioned, within the period of a natural year from the date when the payment is made.

Article 42: Settlement of rights to members administered by EKKI, payment document.

EKKI will settle its members' accrued rights in a share-out period using a payment document prepared for this purpose which, in all cases, must have, at least, the member's code and name, the titles of the works settled and their respective identification codes, the percentage for the owner or rights owner to receive payment, the period of the payment, deductions for administrative and collection expenses, tax retentions if there are such, and the amount, in Euros, assigned to each title in the share-out period.

Notwithstanding the above, all data and information which may contribute to giving greater transparency and understanding to the mentioned document will also be included.

A copy of the payment document for each member will be kept by the Company for a maximum of fifteen years.

INDEX

PREAMBLE

Title I. General regulations

Title II. Share-out systems for author's rights to musical, audiovisual and multimedia works

Chapter 1. Share-out for the use in live performances of works of intellectual property

Chapter 2. Share-out of rights produced by all types of works via public communication using different formats

Chapter 2-1. Collection for use on radio stations

Chapter 2-2. Remuneration for use on television stations

Chapter 2-3. Cinemas

Chapter 2-3. Live radio broadcast, cable distribution and radio broadcast by satellite of EKKI catalogue works organized by third parties

Chapter 2-4. Shopping Areas

Chapter 2-5. Transformed local versions

Chapter 3. Share-out of rights from Reproduction-distribution of all types of audiovisual and multimedia works

Chapter 4. Bonuses for fixation of works pre-existing in advertising

Chapter 5. Ringtones

Chapter 6. Internet

Chapter 7. Private copies

Chapter 8. Payment of rights from other copyright collectives both national and foreign

Title III. Share-out of amounts from the collection of rights for private copies and remuneration for private copies and loans for authors and editors of books and periodical publications

Title IV. Share-out of amounts from the collection of rights on works of plastic art

Title V. Share-out of amounts from the collection of rights for artists and performers

Title VI. Settlements, share-outs, delays and claims

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